Bitcoin’s recent drop below the critical $100,000 support level has triggered a broader sell-off across major cryptocurrencies including ETH, XRP, SOL, and HYPE, signaling increased market volatility.
This downturn reflects heightened risk aversion among traders amid geopolitical tensions and technical bearish signals across multiple crypto assets.
According to COINOTAG, Real Vision CEO Raoul Pal remains optimistic, comparing the current cycle to 2017 and projecting a bullish outlook extending into Q2 2026.
Bitcoin’s fall below $100K drags major altcoins down; market faces critical support tests amid geopolitical tensions and technical bearish patterns.
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Bitcoin Faces Critical Support Test Below $100,000 Amid Bearish Technical Indicators
Bitcoin’s recent breach of the $100,000 support level marks a significant technical setback, with the 50-day simple moving average now acting as resistance. The bearish crossover of moving averages and a declining relative strength index (RSI) underscore the prevailing downward momentum. Sustained trading below $100,000 could accelerate selling pressure, potentially driving prices toward the $93,000 mark. Market participants should closely monitor the 20-day exponential moving average ($104,616) as a key threshold; a decisive break above this level is necessary to signal a potential reversal and restore bullish sentiment.
Short-Term Relief Rally Potential Amid Descending Triangle Breakdown
The completion of a bearish descending triangle pattern on the BTC/USDT 4-hour chart suggests a downside target near $89,420. However, short-term relief rallies remain plausible as buyers attempt to reclaim critical resistance levels at $100,700 and the 20-EMA. Failure to breach these points could deepen the correction, while a sustained move above the 50-SMA is essential for initiating a meaningful recovery phase. Traders should remain vigilant for volatility spikes triggered by macroeconomic events and geopolitical developments.
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Ether’s Struggle to Hold Support Highlights Increased Selling Pressure
Ether (ETH) has mirrored Bitcoin’s weakness, falling below key support levels including the 50-day SMA ($2,481) and the $2,323 price point. The current price action indicates intensified selling, with the $2,111 support acting as a critical defense line. A breach below this level could open the door to a deeper correction toward $1,754. Conversely, a rebound above the 20-day EMA would suggest stabilization and potential consolidation between $2,111 and $2,323. Market participants should watch for a close above the 50-SMA to confirm easing selling pressure.
Range-Bound Trading Expected Amid Volatility
ETH’s near-term price movements are likely to oscillate within a defined range as bulls and bears contest control. The $2,111 to $2,323 corridor will be pivotal in determining whether the market shifts toward recovery or further decline. This consolidation phase could provide strategic entry points for investors seeking to capitalize on volatility while managing risk.
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XRP Breaks Key Support, Faces Potential Further Declines
XRP’s breakdown below the $2 support level signals a bearish shift, with the next significant support at $1.61. A failure to hold this level could precipitate a sharp decline toward $1.28. Despite attempts by bulls to initiate a bounce, aggressive selling near the 20-EMA has pushed the RSI into oversold territory, indicating a possible short-term relief rally. However, sustained recovery hinges on reclaiming the $2 level and surpassing the 50-SMA to reduce selling momentum.
Short-Term Relief Rally Possible but Bears Remain Vigilant
The oversold conditions suggest that XRP may experience a temporary rebound; nonetheless, resistance at $2 and the 20-EMA remains formidable. Should the price fail to overcome these hurdles, the bearish trend is likely to continue. Investors should monitor volume and momentum indicators closely to gauge the strength of any recovery attempts.
Solana’s Bearish Head and Shoulders Pattern Signals Further Downside Risk
Solana (SOL) confirmed a bearish head and shoulders pattern after closing below the $140 support, indicating potential for further declines. The 20-day EMA ($148) is expected to act as immediate resistance during any recovery attempts. A failure to break above this level could see SOL testing the $110 support and possibly the $93 target derived from the pattern. Conversely, a sustained move above the 20-day EMA could signal renewed buying interest and a challenge toward the 50-day SMA ($160).
Oversold RSI Points to Potential Relief Rally
Despite bearish technicals, the oversold RSI suggests a possible short-term bounce. Recovery efforts may encounter selling pressure at key resistance levels, and only a decisive break above the 50-SMA will confirm a trend reversal. Traders should exercise caution and consider risk management strategies during this volatile period.
Hyperliquid (HYPE) Faces Profit-Taking Pressure Amid Support Tests
Hyperliquid’s (HYPE) inability to sustain levels above $42.50 has triggered a sharp correction, with the 50-day SMA ($32.26) serving as a critical support zone. While buyers have defended this level temporarily, selling pressure remains evident, increasing the likelihood of a break below $32.26. Should this occur, the next support target is the $28.50 breakout level. Recovery hinges on reclaiming the 20-day EMA and maintaining momentum above it to challenge the 50-SMA resistance.
Bearish Momentum Dominates Short-Term Price Action
Downward sloping moving averages and a negative RSI on the 4-hour chart confirm bearish dominance. Pullbacks to the 20-EMA are likely to face selling pressure, and minor support at $30.50 may not hold. Traders should watch for a break and close above the 20-EMA as an early sign of weakening bearish control and potential upside movement.
Conclusion
The recent decline of Bitcoin below $100,000 has catalyzed a broader correction across major cryptocurrencies, reflecting increased market uncertainty amid geopolitical tensions and technical bearish signals. While short-term relief rallies are possible, key support levels across BTC, ETH, XRP, SOL, and HYPE remain under pressure. Investors should monitor critical moving averages and RSI levels to assess potential trend reversals. Long-term optimism persists among some analysts, but cautious risk management remains essential in navigating this volatile market environment.
Source: https://en.coinotag.com/bitcoin-dips-below-100000-support-pulling-major-altcoins-lower-amid-potential-relief-rally/